Question

The alphabetical listing below includes all of the adjusted account balances of Battle Creek, Inc. as of December 31, 2018. All account balances are normal. Accounts Payable Accounts Receivable Accumulated Depreciation Common Stock Cash Depreciation Expense Dividends Equipment Income Tax Expense Income Taxes Payable Rent Expense Retained Earnings Salaries and Wages Expense Service Revenue Deferred Revenue $ 3, 2ee 9.389 3,280 3,880 3. see 1.800 1.489 1,880 1.800 1.888 1.780 3. lee 5,600 18.789 2.18 Required: a. Prepare the closing entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" In the first account field.) b. Prepare the post-closing trial balance as of December 31, 2018. (Enter all account balances, Including any that may carry a zero- balance.) c. Prepare the classified balance sheet at December 31, 2018. (Amounts to be deducted should be Indicated by a minus slgn.)

Answer 1

Credit Battle Creek Inc. Journal entries Date Account 31-Dec Income Summary Retained Earnings (To close income summary account) Debit $ 7,800 Calculation =18,700-10,900 Req A $ 7,800 ReqB $ 1,400 31-Dec Retained Earnings Dividends (To close dividends declared) $ 1,400 $ 18,700 31-Dec Service Revenue Income Summary (To close revenue accounts) $ 18,700 $ 10,900 31-Dec Income Summary Salaries and wages expense Rent expense Depreciation expense Income tax expense (To close expense accounts) $ $ $ $ 5,600 1,700 1,800 1,800

Battle Creek Inc. Account Names Cash Accounts Receivable Equipment Accumulated Depreciation Accounts Payable Income Taxes Payable Deferred Revenue Common Stock Retained Earnings Dividends Service Revenue Salaries and wages expense Rent expense Depreciation expense Income tax expense Totals Post Closing TB Debit Credit 3,500 9,300 10,800 3,200 3,200 1,800 2,100 3,800 9,500 23,600 23,600

Battle Creek Inc. Balance Sheet As of December 31, 2018 Assets Current Assets Cash Accounts Receivable Liabilities & Stockholders Equity Current Liabilities 3,500 Accounts Payable 9,300 Income Taxes Payable Deferred Revenue 12,800 Total Current Liabilities 3,200 1,800 2,100 7,100 Total Current Assets Property, Plant & Equipment Equipment Accumulated Depreciation Equipment, Net Stockholders Equity 10,800 Common Stock (3,200) Retained earnings 7,600 Total Stockholders Equity 3,800 9,500 13,300 Total Assets 20,400 Total Liabilities & Stockholders Equity 20,400

Statement of Retained Earnings For the Year Ended Dec 31 Beginning balance Net Income Less Dividends Ending Balance 3,100 7,800 (1,400) 9,500